5 ways expats can save money on healthcare expenses in Hong Kong
The health insurance experts from Pacific Prime share tips to cut back on your medical expensesIn collaboration with Pacific Prime
Hong Kong is still one of the most expensive countries to live for expats. Renting or buying an apartment in Asia’s World City can take up a lion’s share of one’s wages. But there is another area of life that is as important as accommodation – healthcare. According to Pacific Prime’s 2019 Cost of Health Insurance Report, Hong Kong is the third most expensive country to buy private health insurance. The report states that the average price for a comprehensive private medical plan for an individual costs USD$5,738, and USD$17,140 for families of four.
With that being said, we reached out to health insurance experts from Pacific Prime to bring you five ways to save money on healthcare expenses in Hong Kong.
Get hospital insurance only
One way to save on your healthcare expenses is to get an insurance plan that only covers emergencies and treatments you receive at a hospital in Hong Kong, without the outpatient insurance. Inpatient-only plans cover treatments and surgeries you undergo when you have to be admitted to the hospital. Hospital insurance in Hong Kong is the most important type of insurance, as costs related to major medical treatments and emergencies are much higher than any outpatient treatment. This type of plan is a cornerstone for any health insurance on the market. Having only hospital insurance will make the insurance premiums lower, but you will have to pay for any outpatient visits out of pocket.
Lower benefit limits
Another way for expats to save money on healthcare expenses is to use public healthcare facilities only. This can translate to lower insurance premiums if you choose lower benefit limits, which in reality will only cover treatments at cheaper but just as good public hospitals. The main downside to using public healthcare clinics are long waiting times to see a specialist or for any surgery or treatments you might need.
Top-up your company-sponsored plan
Many expatriates that come to Hong Kong have some sort of company-sponsored group health insurance. However, coverage might be limited, as very often these plans don’t cover dental treatments or maternity insurance, for example. Some company insurance plans also won’t cover any other family members. If that’s the case, an easy way to get more comprehensive coverage is to top-up your company plan with the benefits you want. These additions will cost you less money compared to buying a new plan.
Use deductibles or coinsurance
A popular way to save money on your healthcare plan premiums is to use deductibles or coinsurance options.
Deductibles
A deductible is a set amount of money you need to pay first in any given year, before the insurance plan starts to cover your medical expenses. Having a deductible in your plan will decrease the overall insurance premiums you pay.
Coinsurance
Coinsurance means that you have to pay a certain percentage of your medical expenses, let’s say 20%, and rest is covered by your insurance company. It is a good solution for those who generally don’t need much medical attention, or don’t mind paying a bit out of pocket to enjoy private healthcare.
Engage a health insurance broker
Since insurance brokers, such as Pacific Prime, work with multiple insurance companies and are the best source for comparing health insurance plans. Insurance advisors from Pacific Prime also have a very good overview of the healthcare system in Hong Kong and can advise you on the best options considering your needs and budget. Contact them today for a free consultation and plan comparison!
